Rent or Buy a Server which works better for you?
Server rental or Buying Server
We are all aware of the changes happening in laptops and phones as they are visible and we use it. Behind the screens, the hardware is also evolving drastically and changing its ways and matching pace with their counterparts and quite known software.
Remember in good old days when we saw the computers and the restricted areas of server rooms which were physically located near to the computer labs.
Now with times, we have a choice of picking the kind of server, where we want it and how we want and also whether to buy or rent it out.
Spoilt by so many choices, aren’t we?
For this article iam skipping data center, dedicated server or game servers. Today let’s have a look at which option would be better for you is it buying or renting? A big question, so shall we have a look at the key points which needs to be considered before concluding.
How much are you planning to invest in servers?
The answer to this question would put you in a position to take a call on what you need to go for. The key here is to understand the purpose of your business. In case you are planning for a startup and staff comprising of few people and tight on the budget then renting works better as it eases you from the significant investment.
server rental comes with the option to change and upgrade as per your need. If your staff size is increasing and so is the bandwidth can land you with substantial renting cost every month. In this case, you can go for buying a server apt for your business.
If the servers for rent, there is no worry at all. You do not have to know in and out of server meaning technical knowledge or regular maintenance required as it is all taken care of so you have to focus on your business. This, in turn, saves your time and energy.
Scalability and Reliability
Rental servers score more in this area. As the server renters have dedicated teams on disaster recovery and backup servers to ensure the smooth running of your business. This, in turn, saves your working time.
In case the server is bought you need to be ready to handle things on your own. In fact, if it is a company and needs arises to have personnel with technical know-how at hand. If it is a personal server, there are chances of the server going down where internet or electricity is not stable.
The rental servers dedicated server are entirely liable, and the rental companies ensure they are up and running all the time and there is no breakdown.
In case the servers are bought, the technical personnel has to be handy to fix it when it breaks down. In case it is a personal server, it means a lot of work.
CAPEX/OPEX in case of Server rental or Buying Servers!
CAPEX or Capital Expenditure is the expenses of the company and OpEx is the operational expense of the Company.
In case you have choosen servers for rent which is considered an operational expense or OpEx which goes on for the duration. Here Cash flow improves though it will reduce your earnings. This will not be reflected as depreciation in company’s balance sheets.
When you are buying a server, it results in
• Cash outflow
• Increase in number of Assets
• Depreciation gets applied and is added to your Profit/Loss statements
The financial status of the company decides its future course, so it becomes essential to analyse and take a call accordingly.
How can the companies enjoy the technology upgrade?
With evolving technology, companies need to be in sync with the upgrades as and when the versions are released to the market. With rental servers in case of any hardware upgrades.
• The companies are not at risk about any damage caused to their business due to upgrade
• The companies can choose if they need to go for the upgrade by paying the additional charges
• If the upgrade is not possible, they can replace the servers too
• The cost to the company is quite less
If it is a local server and you need to go for the upgrade to next version of the hardware, the price is quite high, and it is going to drill a hole in the cash outflow balance sheet.
The companies now have a choice which they did not have before of renting/buying servers based on their financial status, of course, considering CAPEX and OpEx terms too.
Well, let’s go this way. Computers were designed to make man’s job easy. So now we have experts in every field who are offering best services remotely thanks to connectivity. So why not take advantage of this and reduce the burden?
Seizing the opportunity and Invest time, knowledge and money in the field of your choice would reap you better results. So outsource to the experts in the respective area who could serve you better. The benefits are numerous, reduction in space consumption, no worry about depreciation of assets, close shop at any time without worrying about the disposal, gives you the opportunity to focus on the field of expertise which cannot be valued at all.
Information about types of Server
The Most common servers are dells poweredge, HP Proliant & Ibm Power Servers. These are enterprise servers with the best of web security available in the market. Blade Servers and Tower servers are the other types of the server which are used for high computation, graphics works and can be deployed at any data centers.
All these Servers can be custom configured, with your choice of the operating system loaded and utilised as file servers, vps hosting, database server, dedicated server, hosting server.
Server rental or buying of Servers which would be feasible?
Software professionals have experienced in firsthand the evolving life of computers both in terms of hardware and software. From box type computers to server rooms too thin laptops and now a choice of having to select the servers on need.
|Initial Investment is Nil|
|Maintenance is by Vendors|
|Vendors take care of any kind of mishaps that might arise and ensure smooth operations at any time|
|The rent paid is reflected in OpEx|
|No reflection in CAPEX|
· The companies are not at risk about any damage caused to their business due to upgrade
· The companies can choose if they need to go for the upgrade by paying the additional charges
· If the upgrade is not possible they can replace the servers too
· The cost to the company is quite less
This cost reflects in OPEX
|Heavy Investment is needed|
|Maintenance is a must. It includes personnel, hardware, and infrastructure maintenance.|
|The dedicated team needs to be handy to handle mishaps|
|Investment done for purchase reflects in CAPEX|
|Following are reflected in CAPEX|
· Cash Outflow
· Increase in Assets
· Depreciation of assets
· Any change in configuration risks money, time and also any possible damage that might occur due to upgrades or on replacement of servers
· The cost to the company is quite high
This again reflects in CAPEX
Want to Rent Servers?
Rental India is the right choice!
With the range of opportunities, Rental India has established itself to be one of the major fundamental players in a very short span. Rental India offers an exemplary selection of the latest hardware in the market.
Based on the kind of business, we at Rental India help you to take a call on the apt server needed.
We also support deployment of dedicated server on a data center.
The servers available with us are:
• DELL SERVERS
• HP-HPE SERVERS
• LENOVO SERVERS
• IBM SERVERS
• CISCO SERVERS
In short span of time, we have created a niche for ourselves and growing fast to gain a firm foothold in the industry. Our services in server rental and selling servers speak louder than words as our customers come back to us due to
• Supply only the best hardware in the market from leading vendors
• Optimum price
• Fast and Secure Delivery
• Value for Money
• Technical Support available
‘Service at its best’ has been the motto of Rental India while providing fast, secure and reliable service to our customers. Irrespective of a single server for a short duration or multiple for long we assure you to match your needs with our service.
Why is Renting Servers beneficial?
Renting opens up a wide range of benefits. Let’s have a look at what they are:
• Try, before investing:
With leasing, you get to test the servers of required configuration. It also is a wise option when investment is massive. On complete satisfaction and you are convinced you can go ahead for purchase.
• Need extra servers for upgrades, migration, virtualization or relocation, Whatever the need be irrespective of the duration you will find the right ones for your work
• Monetary Compliance
In Company balance sheets, rental amounts are reflected under OpEx and not in CAPEX. Hence it does not occur in depreciation either does it affect the cash flow
• Short-term Projects
For short-term projects, renting works out better concerning finance, space and personal investment
• For Maintenance, testing, upgrades and disaster recovery
With changing business needs of maintenance, testing, upgrade, or for recovery of data you can hire the servers as required.
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